IT engineering firms, LTTS, and Cyient struggle with high attrition rates

While large IT service firms have reduced their attrition levels to 15 per cent, companies like Cyient, LTTS, and others continue to face high attrition, according to a report published in Financial Express (FE).

The report said attrition levels at Cyient stood at 20.4 per cent, while LTTS reported its attrition at 16.7 per cent. French IT giant Capgemini’s operations and engineering department reported the highest attrition rate, 20.9 per cent, in the second quarter of financial year 2023-24 (FY24).

Reasons behind the high attrition

The primary reason behind the high attrition rates at these companies is the growth of the IT engineering services sector and the high demand for talent from IT engineering service companies and global capability centres (GCCs)